To build its new office building the Happy Company borrowed 30,000,000 Freedites (the currency of Freedonia) at 10% when the Freedite was worth $1. A year later when Happy went to pay off the loan they had to pay 33,000,000 Freedites. However, it cost Happy $34,000,000 to satisfy this loan. Under IFRS how do you account for the $4,000,000 Happy paid which was in excess of the principle borrowed? Under GAAP how do you account for this $4,000,000? Which method do you recommend and why?